Debt Discount Not Enough: CPPE Urges Govt to Cut Multiple Taxes in Aviation Sector
The Centre for the Promotion of Private Enterprise (CPPE) has stated that the Federal Government’s 30 percent debt discount for airline operators will not adequately resolve the structural challenges facing Nigeria’s aviation sector.
In a statement issued by its Chief Executive Officer, Muda Yusuf, the economic think-tank acknowledged the government’s effort to ease the burden of rising operational costs, particularly those driven by multiple taxation and the soaring price of aviation fuel, Jet A1.
However, Yusuf emphasized that the measure offers only short-term relief and does not address the underlying issues affecting the industry.
According to CPPE, a more sustainable solution lies in comprehensive reforms, particularly the reduction and streamlining of the numerous taxes and charges imposed on airline operators.
“A streamlined and moderated cost structure is imperative. Reducing both the multiplicity and magnitude of these charges will significantly enhance the viability, competitiveness, and resilience of domestic airlines,” the statement noted.
The group further warned that excessive financial pressure on operators could have broader implications, including potential risks to operational standards and safety.
It added that meaningful government support must go beyond debt relief to include a holistic review of the aviation cost environment.
CPPE argued that without such reforms, domestic airlines may continue to face challenges that weaken service delivery, drive up ticket prices, and threaten the long-term sustainability of the sector.
The remarks come shortly after the Federal Government announced a 30 percent debt discount for airline operators in a bid to prevent potential shutdowns and rising airfares.
Airline operators had earlier warned of possible disruptions in the sector, citing a sharp increase of about 300 percent in the cost of Jet A1 fuel.
